Opportunity cost is the
A)cost incurred when one fails to take advantage of an opportunity.
B)cost incurred in order to increase the availability of attractive opportunities.
C)cost of the best option forgone as a result of choosing an alternative.
D)drudgery of the undesirable aspects of an option.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the best alternative that must be given up in order to pursue a certain action or decision. Therefore, the correct option is C, as it describes the cost of the best option forgone when choosing an alternative. Option A describes a cost incurred due to not taking advantage of an option, while option B describes a cost incurred to increase opportunities, and option D refers to the undesirable aspects of an option, none of which accurately describe opportunity cost.

Opportunity Cost Is the